European Union probing six more American companies after Apple tax ruling

By KIERAN DINEEN

4th September 2016,10:01 am

Updated: 22nd November 2016,1:02 am

THE European Commission is probing Irish terms with six more multinationals following the ruling Apple must pay €13billion in back tax.

Brussels is scrutinising the opinions given by Revenue to big firms in the early 1990s, when similar information was given to the tech giant.

Both the Government and Apple plan to appeal the finding that there was a sweetheart deal amounting to illegal state aid that allowed the iPhone maker to pay just 0.005 per cent tax in 2014.

But it has now been revealed that the European Commission is actively scrutinising multiple “comfort letters” provided by Revenue to multinationals in Ireland regarding their tax affairs. And the Sunday Business Post reported that Brussels is focusing on six in particular that could lead to Apple-style investigations.

Some of the details have been supplied by Revenue while other information has come about following international leaks, it’s believed.

If it were found that there were any “sweetheart deals” not in line with European rules, there could be further rulings similar to the one on Apple’s back taxes.

Finance Minister Michael Noonan and Revenue have insisted that the opinions given to Apple were legal and that any company could and would have received the same advice.

And Apple boss Tim Cook insisted the Commission ruling was “total political crap” and that they had done nothing wrong.

But that view was rejected by Commission chief Jean-Claude Juncker.

Speaking yesterday at the G20 summit in Hangzhou, China, he denied Brussels was making a stand against the US by focusing on their leading businesses.

He told reporters: “It would be absurd to choose this territory of state taxation to attack the USA.

“We are applying the rules. We are basing our decisions on facts and on the legislation.” The Apple findings come amid growing tensions between Washington and Brussels over a series of EU investigations targeting Google, Amazon, McDonald’s, Starbucks and Fiat Chrysler.

Speaking before the summit, White House Press Secretary Josh Earnest said President Barack Obama would seek to address tax avoidance with world leaders.

Meanwhile, former taoiseach Bertie Ahern insisted that he never had contact with Revenue over a firm’s tax affairs.

The ex-Fianna Fail leader added: “I don’t believe there was ever a sweetheart deal given by the Government or Revenue.”